I think in most cases I've seen they are referring to a multiple of yearly revenue not monthly.
So your 12x monthly is equal to 1x yearly. Determining a valuation of a company is rarely performed with only one factor taken into account. Simply saying an operation is worth x times yearly revenue is silly as there are too many variables to take into consideration. Is company "A" that generates $1M in annual revenue worth more or less than company "B" that generates $500K in annual revenue? Nobody can answer that question until each company is thoroughly evaluated and even then it will be unlikely two independent parties will arrive at the same number. Regarding the equipment used, I believe a network built with carrier grade equipment will always be worth more than an Alvarion or similar "best effort" network. Backhaul infrastructure is far more important in the evaluation of network value than the CPE. CPE only continues to drop in price and therefore will only continue to drop in importance in the overall valuation of a network. The rollups with large money won't be looking at CPE equipment as a deciding factor because they will ultimately be replacing all CPE with their own proprietary gear probably a licensed product. Instead they will be looking at real estate assets, client base, contractual agreements and most importantly PROFITS just to name a few key sticking points. Best, Brad -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Travis Johnson Sent: Sunday, December 03, 2006 4:00 PM To: [EMAIL PROTECTED]; WISPA General List Subject: Re: [WISPA] Network Valuation Considerations So you are saying you haven't seen more than 2.5X the monthly revenue? We sold a division of our company for 12X the monthly revenue + the FMV of the equipment in 2001. The current going rate that I have seen is more around 12X monthly + equipment infrastructure. Travis Microserv Peter R. wrote: > Tom DeReggi wrote: > >>> Nobody in unlicensed is going to get 6X >> >> >> Thats where you are wrong. However, the value of a higher Multiple >> is relevent to the amount of customers one has and what stage of >> development the company is in. > > Nope. No one is currently paying 6X. Most I have seen is 2.5X. > > Companies shopping come to me all the time to make connections. > And I have not seen any pay more than 2.5x. And we are talking MRC not > annual. > Who pays for annual??? > > If I gave you 6x annual, I wouldn't make money for 7 years or more. > Even at 2.5x MRC, I don't see any pay out for 5 months. 2.5 to pay you > ; 2.5 to right the balance sheet. > > Oh, let me add that you can get 6X in STOCK! > > - Peter > RAD-INFO, Inc. -- WISPA Wireless List: email@example.com Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ -- WISPA Wireless List: firstname.lastname@example.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/